Bitcoin's 74% Gain Outpaces Ethereum Amid Bullish Momentum

Bitcoin's market trajectory appears promising as new developments unfold. Market research group Bitcoin Vector has highlighted a cautious influx of capital into Bitcoin, signaling a potential upward trend for the cryptocurrency poised to shift the market dynamics.

Since June, Bitcoin has experienced a notable increase in liquidity, a marker that hasn’t been observed in the last three years. Despite not breaking through its all-time highs, this liquidity boost fosters expectations for a sustained upward movement. The return of capital to the crypto space signals potential bullish momentum. The synchronization of price structure and momentum, seen at the inception of strong historical uptrends, is highlighted as pivotal.

Bitcoin Vector’s analysis points to significant structural and price momentum changes. Historically, these factors have paved the way for sizeable price increases and indicate a renewed vibrant market environment. The combination of structural change and price momentum foreshadows a bull run. This pattern has ignited bullish trends previously and appears to be initiating once more.

In a comparison over the last year, Bitcoin has notably surpassed Ethereum, appreciating by 74% while Ethereum decreased by 28%. Bitcoin’s dominance in the market has increased, whereas Ethereum’s valuation and transaction numbers have lagged, sparking discussions on potential recovery. Bitcoin’s outperforming Ethereum by rising 74% underscores the shift in market dynamics. However, with Bitcoin’s growing dominance, Ethereum has become undervalued, and a rotation is anticipated.

Bitcoin has been experiencing a significant influx of capital, with over $544 billion absorbed since November 2022. This capital inflow has driven the realized market cap to $944 billion, indicating a strong bullish momentum. The cryptocurrency closed Monday with a notable 4.34% gain, reflecting its robust performance amidst broader market conditions.

The crypto market is witnessing a notable shift, with Bitcoin's dominance showing signs of weakening. This trend suggests that altcoins may soon gain strength, although Bitcoin's recent surge past $107,000 has outpaced other assets like stocks and gold. This surge is particularly notable given the ongoing tensions in the Middle East, which have historically impacted global markets. However, altcoins such as Ethereum (ETH), Solana (SOL), and Avalanche (AVAX) have lagged behind, with ETH dropping by 17% and SOL and AVAX showing stagnation.

Despite Bitcoin's retreat from over $108,000, it remains supported by institutional adoption and strong ETF inflows. The institutional interest in Bitcoin is evident through the continuous inflows into Bitcoin ETFs. The U.S. Bitcoin ETFs have seen 13 straight days of inflows, totaling over $2.9 billion. This streak is the longest uninterrupted run since December 2024, highlighting the sustained institutional demand for Bitcoin.

The inflows into Bitcoin ETFs are not driven by retail investors but by long-only institutional demand, which is funneled through over-the-counter (OTC) desks to avoid impacting spot markets. This institutional accumulation is evident in the on-chain data, which shows a significant decline in coins held for less than 155 days. This trend indicates that short-term holders are exiting, allowing the market to shift into the hands of long-horizon investors.

BlackRock’s IBIT ETF, a flagship Bitcoin spot product, has climbed to the fourth position among all U.S. ETFs by 2025 year-to-date inflows. IBIT’s 2025 inflows total a staggering $13.7 billion, with massive single-day flows recorded on several occasions. This dominance extends across nine consecutive days of inflows, while rivals faced stagnation or minor outflows.

The narrative of Bitcoin as a superior macro hedge is gaining traction. Institutional portfolios are rotating out of low-yielding assets and into digital inflation hedges like Bitcoin, signaling a structural reallocation. This trend is further supported by the exodus from gold ETFs, which recorded $1 billion in outflows over the same five-day window that Bitcoin ETFs saw $3 billion in inflows.

The regulatory environment for altcoins is also evolving, with filings for Dogecoin and Aptos spot ETFs signaling growing alignment between issuers and the U.S. Securities and Exchange Commission (SEC). This improved dialogue is expected to shrink approval timelines materially, further underscoring the evolving market structure.

On-chain trends confirm institutional accumulation, with short-term holders exiting and OTC-fueled ETF flows dominating without triggering price spikes. This trend is evident in the volume stability around $107,147–$108,000, indicating that strong hands are accumulating Bitcoin rather than chasing price movements.

The current setup—a blend of steady price action, rising inflows, shrinking retail supply, and bullish regulatory signals—represents a rare asymmetric opportunity. Bitcoin ETFs are attracting real capital, not just speculative bets. With 13 days of inflows, $588.6 million single-day highs, and $13.7 billion year-to-date into IBIT, the conviction is deep. Bitcoin consolidating near $107,000 with volume cooling suggests that strong hands are accumulating, not chasing. Combined with expected altcoin ETF tailwinds and a collapsing correlation with gold, Bitcoin now functions as the primary risk-adjusted macro hedge.